Brand manufacturers’ margins will continue to compress in 2024. As a result, brands will need to perfect pricing elasticity, tap into consumer habits, and make sure advertising dollars are driving profitable growth.
According to the MikMak Shopping Index, online basket sizes have decreased over the past year. Profitero’s study revealed that 58 percent of US shoppers and 55 percent in the UK will check deals and prices online before completing their in-store shopping trip. Similarly, 50 percent of US shoppers and 41 percent in the UK check prices online when shopping in a physical store. This data suggests an urgent need for brands to be more strategic in capturing those consumers who may spend more cautiously in the year ahead.
In the face of uncertainty, brands must keep advertising to maintain and grow market share. Carefully targeted marketing based on a true understanding of customer behavior makes every advertising dollar go farther.